How should real estate + emerging-market business exposure affect a Bogleheads portfolio allocation?
I’ve read through the Bogleheads wiki and think I understand the basic principles, but I’m trying to figure out how to apply them across our entire household balance sheet, rather than viewing our brokerage/retirement accounts in isolation.
Two aspects of our situation seem relevant:
We own debt-free real estate that will generate roughly 1/3 of our required retirement income.
We also own an overseas business that we expect to maintain for approximately the next 20 years. It operates in economies generally classified as emerging markets, and both the business environment and local currency can be somewhat volatile. Ultimately, proceeds from the business will be invested into our retirement and taxable accounts.
My main question is how these assets should influence the allocation of our conventional investment portfolio.
**1. International / emerging-market exposure:**
Would it be reasonable to intentionally underweight or exclude emerging-market equities in our financial portfolio because we already have substantial economic and currency exposure to emerging markets through the business? Or, from a Bogleheads perspective, should the investment portfolio still be allocated according to global market weights regardless of outside assets?
**2. Bonds / real estate income:**
I understand that rental real estate is not literally equivalent to bonds and carries very different risks. But if the properties are debt-free and provide relatively stable cash flow covering about one-third of our retirement spending needs, should that affect how much fixed income we need in the investment portfolio?
We have a long horizon and are comfortable with equity volatility, so I’m particularly interested in whether a mostly/all-equity portfolio would be reasonable while we are still far from needing portfolio withdrawals.
For those who think about allocation at the household balance-sheet level, what would a simple Bogleheads-style stock/bond and U.S./international allocation look like in this situation?
I’m less interested in maximizing returns than in avoiding unintended concentration or duplicated risk.